The Purpose of Financial Statements Contained in Annual Reports Is

question 83

Multiple Choice

The purpose of financial statements contained in annual reports is to

• A)communicate information about the financial health of a company to external users.
• B)assist internal managers in making pricing decisions.
• C)both communicate information about the financial health of a company to external users and assist internal managers in making pricing decisions.
• D)neither communicate information about the financial health of a company to external users nor assist internal managers in making pricing decisions.

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Definitions:

Basic Subsistence

The minimum resources necessary for maintaining the basic levels of living including food, shelter, and clothing.

Federal Government

The national government of a federal country, which holds the ultimate authority over matters that affect the country as a whole.

Homeless

The state of lacking stable, permanent, and appropriate housing, resulting in living on the streets, shelters, or in temporary accommodations.

Underemployed Worker

A person who has a part-time job but would rather work full time or whose job is below his or her experience, skill, and educational level.